Pos Malaysia Berhad · Pos Malaysia Berhad (229990-M) (229990-M) Level 8 Pos Malaysia Headquarters, Dayabumi Complex, 50670 Kuala Lumpur. 1 300 300 300 Supply Chain Solutions

Pos Malaysia Berhad(229990-M)

(229990-M)

Level 8 Pos Malaysia Headquarters, Dayabumi Complex, 50670 Kuala Lumpur.1 300 300 300

Supply ChainSolutions

Communications &Distribution Solutions

International BusinessSolutions

DigitalSolutions

One-StopSolutions

Pos Malaysia Berhad(229990-M)

(229990-M)

Level 8 Pos Malaysia Headquarters, Dayabumi Complex, 50670 Kuala Lumpur.1 300 300 300

Supply ChainSolutions

Communications &Distribution Solutions

International BusinessSolutions

DigitalSolutions

One-StopSolutions

b

Looking Ahead Going Beyond

We have come a long way from being a provider of traditional postal services. As we embark on our next phase of transformation, we are gearing towards becoming the preferred one-stop provider for communications, financial services and supply chain solutions. Going forward, we will explore and adapt to new business opportunities beyond the postal industry to remain relevant amidst changing customer behaviours.

In line with our theme, Looking Ahead Going Beyond, Pos Malaysia will ride the waves of change in search of new opportunities and ultimately, a new future for Pos Malaysia.

inside t h i s r e p o r t

Section 5CORPORATE

GOVERNANCE

Corporate Responsibility Statement • 60Corporate Governance Statement • 66Statement on Risk Management and Internal Control (SRMIC)

• 82

Director’s Responsibility Statement • 86Additional Compliance Information • 87Audit Committee Report • 92

Section 6FINANCE

Director’s Report • 98Statements of Profit or Loss and Other Comprehensive Income

• 101

Statements of Financial Position • 103

Statements of Changes in Equity • 105Statements of Cash Flows • 107Notes to the Financial Statements • 110Top 10 Properties • 194Analysis of Shareholdings • 198Notice of 21st Annual General Meeting • 202

Proxy Form

Section 1

Cover Rationale • iVision, Mission & Core Values • 2Facts at a Glance • 3Group Financial Highlights • 4Business Highlights • 6Share Price Performance • 8

Section 2Chairman’s Statement • 10Management Report • 16

Section 3

Accolades and Awards • 24List of Offerings • 26Corporate Events • 30Pos Malaysia in the News • 40

Section 4LEADERSHIP

Corporate Information • 42Group Structure • 44Board of Directors • 46Board of Directors Profile • 48Group CEO’s Profile • 55Leadership Team • 56

Pos Malaysia BerhadAnnual Report 2013

Facts at a Glance

2

The trusted leader in the delivery of integrated physical and digital solutions

Deliver excellent customer experience and convenience in the areas of communications, logistics, financial services and supply chain solutions at the highest level of reliability and integrity

• Timeliness• Customer Centricity• Decorum• Excellence• Integrity• Accountability• Innovation

Vision

Mission

Core Values

www.pos.com.my

3

Facts at a Glanceas at 31 March 2013

8,200Total number of vehicles

85,700Number of PO Boxes

3,300Number of Street Posting Boxes

5,700Number of touchpoints

16,200Number of staff


4

Group Financial Highlights

RM Million

2008

(33

.3)

2010

67

.1

2011/12*2012/13

13

8.8

15

1.3

2009

76

.7

0

50

100

150

200

Profit After Tax

92

1.7

1,0

15

.0

1,4

81

.7

1,2

69

.5

90

2.6

0

300

600

900

1,200

1,500

RM Million

2008 2010 2011/12*2012/132009

Revenue

86

.2

83

.4

18

2.6

16

0.8

82

.4

0

50

100

150

200

RM Million

2008 2010 2011/12*2012/132009

Operating Profit

(6.2

)

12

.5

25

.9

28

.3

14

.3

0

5

10

15

20

25

30

2008 2010 2011/12*2012/132009

Sen

Earnings Per Share

12

6.7

14

0.5

26

9.5

24

6.1

13

1.3

0

50

100

150

200

250

300

RM Million

2008 2010 2011/12*2012/132009

EBITDA

1.4

2

1.5

4

1.6

7

1.7

6

1.4

9

0

0.5

1.0

1.5

2.0

Sen

2008 2010 2011/12 2012/132009

NTA Per Share

* 15-month performance

www.pos.com.my

5

Revenue Breakdown FYE2013

Mail57.1%

Courier25.4%

Retail13.8%

Others3.7%

Operating Expenses Breakdown FYE2013

Staff Costs61.4%

Rental, communicationand utilities

5.1%

Transportations12.0%

Maintenance and supplies5.1%

Raw materials and consumables2.3%

Depreciation of property,plant and equipment

7.7%

Other operating expenses6.4%

2012/13 2011/12 2010 2009 2008

ProfitabilityProfit Before Tax (RM mil’) 191.9 200.2* 99.1 109.3 (0.5)Operating margin % 12.7 12.3 8.2 9.1 9.4EBITDA margin % 19.4 18.2 13.8 14.5 13.7Return on Assets % 10.3 10.2^ 6.3 5.9 6.2Return on Equity % 16.0 12.4^ 8.1 9.6 (4.4)

Balance SheetTotal Assets (RM mil’) 1,615.3 1,498.1 1,375.2 1,274.6 1,537.8Total equity attributable to equity shareholders of the company

(RM mil’) 947.7 898.1 828.6 799.6 764.5

Current Ratio Times 1.4 1.2 1.4 1.2 1.1

Staff InformationNo of staff No 16,245 15,877 15,618 15,780 16,125Staff cost to revenue % 53.7 52.7 55.1 56.8 55.7Revenue per employee (RM’000) 78.1 74.7^ 65.0 57.2 57.2

^ Annualised figures

* 15-month performance


6

Business Highlights

MAIL BUSINESS

Business Review

• Revenue: RM724.5 million• Revenue Contribution: 57.1%

COURIER BUSINESS

Business Review


RETAIL BUSINESS

Business Review


Achievements 2012/13

• Earned the UPU Expedited Mail Service (EMS) Gold Certification for the second year running in 2012

• Launched PosEdaran services, encompassing offerings namely MyDespatch, Telco@Pos and MyDistribution, which focused on delivery of merchandise as well as running errands for customers

• Introduced the Direct Mail service to further enhance promotional efforts of customers’ products and services

• Successfully completed Phase I of the Postal Transformation Program for Sabah and Sarawak (PTPSS) with the appointment of 600 Community Po s tmen and 1 ,000 Po s t a l C ommun i t y Representatives as well as the implementation of 10 Pos-on-Wheels (PoWs) in Sabah and Sarawak

• Ministry of Information, Communications & Culture (Kementerian Penerangan Komunikasi & Kebudayaan – KPKK) has approved PTPSS Phase II with additional budget from the Government. Phase II of PTPSS commenced in November 2012 for a period of two years

Moving forward

• Continue to further expand PosEdaran offerings with MyShopping, which would allow customers to shop from home

• To introduce Flexipack – Enhancing the features of our Small Packet product by introducing a new flexible prepaid pack known as Flexipack which comes in 2 sizes

• Embark on development of a new track-on system for PosDaftar to keep abreast with business requirements and technological changes

MAIL BUSINESS


• Awarded the “Reader’s Digest Trusted Brands Gold Award in the Airfreight/Courier Service Category in Malaysia for 2012”

• Honoured with “Frost & Sullivan Malaysia Excellent Award for Domestic Express Service Provider of the Year for 2012”

• Offered logistics services to corporate clients through the Integrated Fulfilment Services (IFS) initiative

• Introduced PosLaju’s Authorised Agent, a new business model to extend the coverage of courier services to inaccessible outlets beyond the normal working hours

• Strategic collaboration between PosLaju and MPH Bookstores to expand the distribution channels and provide convenience to public

• Successfully launched Hantar & Menang contest as part of PosLaju’s customer appreciation campaign initiatives

• Provided Umrah baggage handling services

Moving forward

• To develop the integrated track & trace system

• Expanding our channel of distributions by introducing the kiosks business model in high traffic areas to provide convenience to our customers

• To introduce portable counter at PosLaju Branch to serve the customers and reduce the congestion during peak hours


• Opened 36 ArRahnu outlets operating conveniently within Pos Malaysia Outlets (Post Offices) to offer Islamic microcredit financing facility

• Collaborated with Uni Asia Life Assurance Berhad offering PosHayat and Pos Bestari Life insurance

• Extended the POS24 terminals to a total of 25 locations to provide convenience to our customers in accessing our services beyond the normal working hours

• Deployed dedicated corners for Insurance business at selected outlets

• Sales and service team employed to boost sales performance

• Full deployment of 24 PoWs at new rural areas to reach out to the rural communities with 10 units in Sabah and Sarawak

• Extended postal merchandising via PosShoppe to another 85 outlets, bringing the total to 185 outlets

• Awards received:

1st and 2nd placing for the best zakat counter in 2012 by Pusat Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan (PPZ MAIWP) for Post Office KLCC and Gombak, respectively

Special award for PoWs Wilayah Persekutuan by PPZ MAIWP Super Platinum Award from Zurich Insurance Malaysia Berhad Top Financial Institution – Top Agencies Financial Categories from RHB

Insurance Berhad Franchise Appreciation Award from Allianz General Insurance Company

(M) Berhad

Moving forward

• Upgrade our selected outlets to the new retail design

• To expand International Express Money Order (IEMO) services to other countries such as Vietnam, India, Bangladesh, Cambodia and Laos

• Collaborate with Takaful Principal to promote Family Takaful Products

• Expand ArRahnu outlets to a total of 100 by end of financial year

• Expand PoWs services to rural communities in Sabah and Sarawak via additional 6 new units

www.pos.com.my

7

COURIER BUSINESS RETAIL BUSINESS


8

Share Price Performance

Apr 12

Apr 12

Apr 12

May 12

Jun 12

Jun 12

Jul 1

2Ju

l 12

Aug 12

Aug 12

Sep 12

Sep 12

Oct 12

Oct 12

Oct 12

Nov 12

Nov 12

Dec 12

Dec 12

Jan 1

3

Jan 1

3

Feb 1

3

Feb 1

3

Mar 13

Mar 13 0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

10,000

(10,000)

30,000

50,000

70,000

90,000

110,000

130,000

150,000

Volume (’000)

Share Price

2012 2013

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Total Monthly Volume (’000) 93,039 121,594 173,485 140,354 546,353 275,820 277,862 261,707 288,003 451,821 202,443 246,371 Monthly High (RM) 2.75 2.76 2.91 2.92 3.34 3.25 3.15 3.18 3.49 3.73 3.81 4.25 Monthly Low (RM) 2.67 2.58 2.60 2.78 2.87 3.04 3.00 2.93 3.12 3.30 3.41 3.74 Monthly End Closing (RM) 2.73 2.71 2.82 2.91 3.19 3.11 3.02 3.18 3.48 3.55 3.78 4.24

www.pos.com.my

9

Facts at a Glance

10

Dear Valued Shareholders,

On behalf of the Board of Directors, it gives me great pleasure to present the Annual Report and Audited Financial Statements of Pos Malaysia Berhad (“Pos Malaysia” or “the Company”) and its subsidiaries (“Pos Malaysia Group” or “the Group”) for the Financial Year Ended 31 March 2013.

Chairman’s Statement


www.pos.com.my

11

CHALLENGING MACRO ENVIRONMENT

During the year, global economic prospects improved although the path towards recovery in advanced economies appears to remain constrained by fiscal and structural concerns. Significantly, emerging economies, including Malaysia, have remained resilient and continued to perform favourably. Specifically, domestic economic growth as measured by Gross Domestic Product (GDP) improved to 5.6% in 2012 compared to 5.3% in the preceding year. The underlying domestic trend was not unexpected and reflects a progressive restructuring of the economy over the last decade. This structural realignment seems to have afforded Malaysia greater policy flexibility, which has proved fundamental in an increasingly uncertain macro landscape.

A DYNAMIC YEAR

While the global macro landscape was generally sluggish, the postal industry in particular has been increasingly challenged by widespread adoption of digital technologies. Despite the latter causing shifts in demand for traditional postal services, we registered a resilient performance in the year under review. This was largely due to Pos Malaysia’s preparedness to ride on the digital wave and institutionalise positive change. The Group has been Looking Ahead at various transformation initiatives with the broad objective of maintaining our edge. This has entailed Going Beyond traditional mail offerings to diversify our income stream whilst enhancing the Group’s profit margins.

Pos Malaysia closed the year with record revenue of RM1.27 billion, equivalent to an increase of 7.8% against the preceding year, driven primarily by our courier and retail businesses. Double-digit growth posted by our courier outfit was underpinned by strong on-demand and contract businesses as well as an expanding parcel business in line with the exponential growth of online businesses. Our retail arm, meanwhile, recorded higher revenue per transaction consistent with our strategy of moving up the value chain by venturing into the more lucrative insurance business and financial services, amongst others.

Evidence that our revenue diversification strategy is taking effect can be seen in the shift in our revenue profile, with mail revenue contribution reducing to 57.1% against 61.7% the preceding year. In going beyond traditional mail services, we have also seized on the potential of creating synergies with the DRB-HICOM Group of companies. In many instances, our suite of offerings such as Corporate Mail Management, courier, fulfilment and logistics services have been able to enhance the operations of other companies within the larger group.

These positive developments, coupled with greater cost savings and operational efficiencies brought about by our transformation, led to a Profit Before Tax of RM191.9 million and Profit After Tax of RM151.3 million, representing an annual increase of 26.6% and 50.4%, respectively.

NEW VISION, MISSION AND CORE VALUES UNVEILED

The changes taking place at Pos Malaysia are unfolding at a very fundamental level, redefining what we are as a Group, what we do, and how we do it as reflected in the new Vision and Mission statements unveiled in the year under review. Our Vision, to be ‘The trusted leader in the delivery of integrated physical and digital solutions’, resonates with our aspiration to stay relevant in a fluid marketplace while reflecting our digital agenda. We believe we have strong capabilities to become a leader in integrating the physical and digital worlds, leveraging on our wide range of offerings.

Correspondingly, a renewed Mission statement has been introduced where we pledge to ‘Deliver excellent customer experience and convenience in the areas of communications, logistics, financial services and supply chain solutions with the highest level of reliability and integrity.’ This is backed by our Core Values; Timeliness, Customer Centricity, Decorum, Excellence, Integrity, Accountability and Innovation. The Vision, and Mission statements together with the Core Values are aimed at steering Pos Malaysia’s strategy towards charting growth in the exciting new phase the Group has entered.


12

Chairman’s Statement (cont’d.)

TRANSFORMATION IS SCORE

Pos Malaysia’s transformation exercise is underpinned by five strategic thrusts derived from the acronym SCORE which stands for Solutions driven by technologies, Customer centricity, Operational efficiency, Revenue and geographic diversification opportunities, and Effective enablers’ capabilities. The primary deliverable of SCORE encompasses a structural realignment of our business portfolios into five key business clusters, namely Communications and Distribution Solutions (CDS), One-Stop Solutions (OSS), Supply Chain Solutions (SCS), Digital Solutions (DS) and International Business Solutions (IBS).

This realignment reflects a change in mindset to support a paradigm shift towards customer-driven solutions, as opposed to a predominantly product-centric culture previously. Our renewed focus enables the Company to open up new possibilities and seize opportunities in growth areas within the domestic as well as international markets; reinvent our business models to enhance value creation; and challenge the norm to meet the wants and needs of an increasingly discerning customer profile.

Communications and Distribution Solutions

One Stop Solutions

Supply Chain Solutions

Digital Solutions

International Business Solutions

• Mail• Direct Mail• Distribution

• Retail• Payments• Financial• Ar-Rahnu• Philately

• Courier • Express• Parcel• Integrated Logistics

• Data and Document Processing• Certification Authority• E-Services• Total Office Solutions

• International Express and Courier

• International Packet and Parcel • International Mail

The ultimate objective of SCORE is to create an efficient and effective foundation that provides Pos Malaysia with both the strength and stability to support revenue diversification, in line with best practices of other successful postal organisations. In pursuing this Transformation Plan, we are leveraging on both the inherent strengths of Pos Malaysia – derived from our extensive network and workforce as well as the potential synergies that can be created with the DRB-HICOM Group of companies, its partners and stakeholders.

Already, significant synergies have been created; and Pos Malaysia is now a Lead Logistics Provider for the automotive companies within the Group. We expect to reap further opportunities within the Group from traditional postal offerings to more recently engaged offerings such as logistics, warehousing, fulfilment and record management services.

A portfolio of Strategic Initiatives (“SIs”) has been identified to bring about transformational changes to drive Pos Malaysia’s performance, and several projects under the SIs were launched during the year. These include ArRahnu@POS, a Shariah-compliant gold-backed micro financing scheme; PosAssurance, which saw the launch of two life insurance products, PosHayat and Pos Bestari; and Direct Mail, an alternative and creative avenue for customers to advertise their businesses, products and services through the distribution of mail or samples to targeted audiences or areas in a more effective manner.

www.pos.com.my

13

A CULTURE OF EFFICIENCY AND EFFECTIVENESS

To support our blueprint for change, we have set up a dedicated SCORE Office with full-time personnel tasked with ensuring the success of our transformation journey. This office monitors the progress made on our transformation scorecard and reviews our plans on a regular basis to ensure they are in line with the prevailing economic and financial landscape. It also keeps employees updated on what we have achieved, and the areas in which we need to improve.

Key to the successful implementation of our plans are efficiency and effectiveness, which have led to a complete IT overhaul of our front-end system, greater automation of processes and procedures, and the constant search for more innovative ways of doing things. Our transformation is also driven by focus on QCD, or quality, cost and delivery. By this, we ensure that our products and services are always of the highest quality; that we value-engineer our processes to bring about cost savings; and that there is never any compromise on excellence in our service delivery be it with customers, fellow colleagues or any other group of stakeholders. At the same time, Pos Malaysia has also adopted the HICOM Management System (HMS), a practice established by DRB-HICOM Berhad, which distils best practices in terms of management, standard operating procedures and other processes essential to the smooth and efficient functioning of an organisation.

EMPOWERING OUR PEOPLE

As we strive to achieve our Vision and Mission, it is critical for all our workforce to move in tandem towards attaining our goals. There is therefore much emphasis on employee engagement to ensure everyone is inspired by the same aspirations. More than 100 town hall sessions have been held at which members of the Management shared the Company’s direction, core values and targets with all employees. To further cement awareness and understanding, we have engaged with our employees through various print and electronic communication channels, including the publication of literature in illustrated format.

Meanwhile, we believe in empowering our employees via continuous training and development to equip them with the prerequisites to perform optimally. We have also embarked on a talent spotting initiative, under which those with leadership potential are placed on clearly defined career paths and given the opportunity to take on senior roles within the Group. To instil a culture of performance, a performance-linked reward system has been adopted which also serves as the foundation for career advancement.

SUSTAINABLE CORPORATE RESPONSIBILITY

At Pos Malaysia, we are committed to the highest levels of corporate governance and continually update our policies and principles according to the latest guidelines and best practices. Corporate governance forms an integral part of our more wide-ranging commitment to corporate responsibility which we believe is critical for our sustainability.

While we are diversifying our business and aim to become a one-stop logistics solutions provider, we will continue to prioritise our original function, namely to provide quality postal services to all Malaysians. In this regard, we work closely with the relevant government authorities on initiatives such as the Postal Transformation Programme for Sabah and Sarawak (PTPSS) which has now entered its second phase.

At the international level, we keep updated of developments in the postal industry, and contribute towards enhanced international services. During the year under review, we were elected to the Postal Operations Council (“POC”) of the Universal Postal Union and now look forward to working with members from 39 other countries towards modernisation of postal services.


14

Chairman’s Statement (cont’d.)

PROSPECTS

Postal services industry throughout the world is facing pressure from widespread adoption of electronic communication. However, we see the challenges posed by a rapidly digitalising landscape as opportunities for change, and are adapting to the new norm with strategic business diversification plans that will take Pos Malaysia to new heights.

Still, I believe Pos Malaysia is ahead of the game with our Transformation Plan, our Vision, Mission and values. Not only have we mapped out our transformation journey for the next five years, we have also put in place milestone checkpoints to ensure we do not get derailed along the way. Just one year into SCORE, we have already witnessed many positive changes in the Company both operationally and financially. Yet this is just the beginning. There are many more far-reaching initiatives in the pipeline, which will be rolled out in the near future. Given these fundamental changes, we are optimistic about the financial year 2014 and beyond, and look forward to presenting sustainable performance to our stakeholders.

Awards and Accolades

Despite the many challenges encountered over the year, we continued to deliver our promise to our valued customers. Pos Malaysia managed to bag the Universal Postal Union (“UPU”) Expedited Mail Service (“EMS”) Gold Certification for the second year running. At the same time, our post offices at KLCC and Gombak were placed first and second by Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan (“PPZ MAIWP”) for having the Best Zakat counters. In addition, Pos-on-Wheels in Wilayah Persekutuan won a special award by PPZ MAIWP. Our contributions to the insurance business have also been recognised, and we received several awards from our partners, including:

• The Super Platinum Award by Zurich Insurance Malaysia, • Top Financial Institution, Top Agencies Final Categories by RHB Insurance Berhad; and,• Franchise Appreciation Award by Allianz General Insurance Company.

In upholding its standards and commitment, PosLaju continued to be recognised for its excellent performance and for the seventh consecutive year by winning the Reader’s Digest Trusted Brands Gold Award in the Airfreight/Courier Service Category in Malaysia for 2012. It was also the recipient of Frost & Sullivan Malaysia Excellent Award for Domestic Express Service Provider of the Year for 2012.

DIVIDENDS

The Board of Directors would like to propose a final dividend of 9.5 sen per ordinary share less income tax at 25% totalling RM38.3 million, subject to our shareholders’ approval at the forthcoming Annual General Meeting. This is in addition to the earlier interim dividend of 8.0 sen per ordinary share less income tax at 25% paid on 31 December 2012, amounting to RM32.2 million. The total dividend payout of RM70.5 million on the back of robust net cash generated from operating activities of RM208.7 million translates into a dividend payout of 46.6% of Pos Malaysia’s net Profit After Tax, consistent with our policy to provide sustainable returns to our shareholders.

www.pos.com.my

15

BOARD CHANGES

The Board of Directors and Management of Pos Malaysia would like to extend a warm welcome to four new Board members. Dato’ Sri Che Khalib bin Mohamad Noh was appointed to the Board on 17 August 2012, and brings with him many years of experience in the corporate world. Encik Abdul Hamid bin Sh. Mohamed, who was appointed to the Board on 1 March 2013, has vast knowledge and experience in the financial and banking services sector. Datuk Mohamed Razeek bin Md Hussain Maricar, who was appointed on 24 April 2013, has extensive experience in the property sector. Datuk Puteh Rukiah binti Abd. Majid has held various senior positions in the Ministry of Finance, and was appointed on 7 June 2013.

At the same time, the Board of Directors and Management of Pos Malaysia would like to convey our sincere appreciation to YB Senator Datuk Low Seng Kuan who resigned from his position as the Company’s Senior Independent Director on 16 May 2013 to take up a new posting as a Minister in the Prime Minister’s Department. We also would like to thank Dato’ Wee Hoe Soon @ Gooi Hoe Soon, Dato’ Lukman bin Ibrahim and Dato’ Krishnan a/l Chinapan, who all stepped down during the period under review, for their contributions.

ACKNOWLEDGEMENTS

I would like to take this opportunity to thank our various stakeholders who have contributed to Pos Malaysia in one way or another. First and foremost, on behalf of the Board of Directors, I would like to express our gratitude to our employees for their loyalty and unfaltering commitment in supporting the Company’s Transformation Plan and business strategies. It is my fervent wish that they continue to display the same dedication and team spirit as we strive to achieve the objectives of SCORE and take the Company to greater heights.

I would also like to acknowledge Pos Malaysia’s partners and loyal customers for their trust and confidence in the Company’s ability to deliver and excel. We pledge to continue in our efforts to enhance our operational efficiency and service quality to be at par with best practices.

I wish to extend our humble appreciation to the then Minister of Information, Communications and Culture; YBhg Tan Sri Dato’ Seri Utama Dr. Rais Yatim, Dato’ Mohamed Sharil Mohamed Tarmizi, Chairman of the Malaysian Communications and Multimedia Commission as well as thank the Ministry, the Commission and Bank Negara Malaysia for their support and encouragement. I would also like to welcome the Minister of Communications and Multimedia; YB Dato’ Sri Ahmad Shabery Cheek as we look forward to the continued partnership with all our stakeholders, to serve the rakyat to the best of our ability, fulfilling their needs and providing convenience at our touchpoints all over the country.

On behalf of my colleagues on the Board, I would like to acknowledge the significant stewardship of Dato’ Khalid bin Abdol Rahman, who served as the Group Chief Executive Officer (“GCEO”) in the year under review until his reappointment to DRB-HICOM Group in February 2013 and also to Encik Mohd Shukrie bin Mohd Salleh, who assisted in managing the team at Pos Malaysia with the Board and I, during the interim period. At the same time, we welcome our new GCEO, Dato’ Iskandar Mizal bin Mahmood, who assumed his position effective 15 July 2013. With his vast experience and excellent leadership qualities, we believe Pos Malaysia will continue to chart excellent growth.

To our valued shareholders, thank you for your support, trust and confidence in the Company. We would like to assure you that we will strive to excel and deliver sustainable returns.

Finally, I would like to express my gratitude to fellow members of the Boards of Pos Malaysia for your wise counsel which has helped the Company in its growth in the last financial year. We have a great team here at Pos Malaysia, and my only wish is for us to continue working together in Looking Ahead Going Beyond as we endeavour to stay ahead of the curve and realise our Vision – for the benefit of the stakeholders and the nation.

Thank you.

Tan Sri Dato’ Sri Haji Mohd Khamil bin JamilChairman


16

Management Report

POSTAL SERVICES ORGANISATIONS GLOBALLY CONTINUE TO FACE PRESSURE ON STRUCTURAL MAIL VOLUME DECLINE BROUGHT ABOUT BY THE ADVENT OF THE DIGITAL REVOLUTION WHILST FACING THE ECONOMIC MALAISE THAT IS DAMPENING MOST DEVELOPED ECONOMIES. MALAYSIA WAS INSULATED FROM THE WORST OF THE WOES DRAGGING GLOBAL ECONOMIES, AS GROSS DOMESTIC PRODUCT (GDP) GREW BY A HEALTHY 5.6% IN 2012, THANKS TO STRONG ECONOMIC FUNDAMENTALS, WHICH WERE FURTHER BOOSTED BY UNRELENTING EFFORTS BY THE GOVERNMENT AND PRIVATE SECTOR TO REALISE THE GOALS OF THE ECONOMIC TRANSFORMATION PROGRAMME.

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17

At Pos Malaysia, we stood to benefit from the continued vibrancy of the domestic economy. While the pressures of the digital economy continue to squeeze on our traditional source of income, we have embarked on a strategic transformation journey; diversifying our businesses to secure new and stable sources of revenue and to regain our stature as an organisation that provides solutions which are relevant to today’s increasingly digital lifestyle.

During the financial year under review, we entered the second Wave of our strategic transformation journey – themed SCORE. SCORE – which takes us from year 2013 to 2017 – represents the beginning of Pos Malaysia’s strategic transformation, where we have set out to aggressively pursue revenue diversification strategies which include embracing digital opportunities. SCORE was launched with a portfolio of strategic initiatives that strives to expand our revenue sources and to address cost concerns. In its first year, SCORE has already managed to yield encouraging revenue to the Group.

FINANCIAL PERFORMANCE

The Group achieved revenue of RM1,269.5 million in the financial year ending 31 March 2013 (FY 2013), marking a 7.8% increase from previous corresponding period. Group operating expenses (OPEX), meanwhile, rose by 6.0% to RM1,108.7 million in tandem with the rising business costs. Containing staff costs, which represent 61.4% of total OPEX, proved challenging as a result of the Federal Government Gazette on Minimum Wage (Amendment) Order 2012 as well as the implementation of a five-day working week. However, lower fuel surcharges during the financial year and lower rental, communications and utility spending helped mitigate this effect.

The slower OPEX growth against revenue translated into improved profitability performance. Profit Before Tax (PBT) and Profit After Tax (PAT), which settled at RM191.9 million and RM151.3 million respectively, demonstrated marked improvement of 26.6% and 50.4% against preceding year.

OPERATIONS REVIEW

Mail Business

The mail business, the core revenue contributor, has developed an extensive postal network over the years. At the heart is the Pusat Mel Nasional (PMN) in Shah Alam, supported by 24 Mail Processing Centres, 348 delivery branches, more than 3,300 street posting boxes, and an international gateway at the Kuala Lumpur International Airport. These are served by over 5,000 delivery postmen, who also deliver to almost 8 million addresses throughout the country.

Mail remains the largest revenue contributor, accounting for 57.1% of total Group revenue. Revenue from mail business recorded a marginal decline of 0.2% against preceding year to RM724.5 million amidst sustained mail volume.

In an effort to arrest mail volume decline and diversify our revenue beyond traditional mail, we have launched Direct Mail and PosEdaran in FY 2013. Direct Mail presents a creative avenue for customers to advertise their business, products and services through the distribution of mail or physical samples to targeted recipients in a more effective manner. PosEdaran is an effort to leverage further on the current mail network to deliver solutions beyond traditional mail offerings; such as mobile prepaid top-ups, personal despatch and distribution services.

The digital revolution is a double-edged sword. While it diverts physical communications away from our core mail business, it is also an enabler to increase efficiency. During the year we saw the implementation of a Radio Frequency Identification (RFID) Street Posting Box Monitoring System which monitors the collection of mail from post boxes and the use of scanning technology at PMN to improve the speed and accuracy of mail processing. Mail automation level improved to 80% from 63%. Various operational efficiency programmes are also being put in place such as the HICOM Management System which encompasses Visual Management, 5S and Autonomous Maintenance.

At the same time, we continue to streamline our physical presence. The Batu Pahat Mail Processing Centre (MPC) was integrated with the MPC in Kluang, and seven delivery branches countrywide were rationalised and personnel were redeployed to other growth areas.


18

Management Report (cont’d.)

Courier Business

Courier business, encompasses PosLaju, the nation’s preferred domestic courier and premium postal services provider, and AsiaXpress which focuses on international courier services. PosLaju boasts an extensive network in Malaysia, as its services are readily accessible throughout Malaysia at 65 PosLaju centres, more than 700 post offices, inclusive of 156 PosShoppe, over 300 mini post offices and 24 units of Pos-On-Wheels mainly serving remote areas in Malaysia.

Courier and premium postal services which have been identified as a key growth area within Pos Malaysia, posted solid double digit growth to garner a revenue of RM322.7 million. This translated into higher contribution to Group revenue of 25.4% from 21.4% in the previous year. E-commerce has spurred demand for this segment to facilitate the delivery of merchandise purchased online. Consequently, PosLaju saw positive growth in the On-Demand retail business segment, leading to revenue from On-Demand services surpassing that of business courier services.

In maintaining its growth momentum, efforts are underway to increase accessibility, adapting to the busy and changing lifestyles of our customers. We introduced the PosLaju Authorised Agent program; allowing third parties to offer selected courier services such as accepting courier items for delivery and selling PosLaju Prepaid Boxes and Envelopes, at the same time extending the working hours of selected PosLaju Centres and also operates during the weekends. To date we have more than 100 PosLaju Authorised Agents across the nation.

During the financial year, two new services were introduced as part of the Strategic Initiatives under SCORE, namely Al-Ajwa and Integrated Fulfillment Services (IFS). Al-Ajwa involves trading of products from the Middle East incorporating shipping arrangements, while IFS comprises end-to-end logistics solutions provided primarily to manufacturing and service industry.

PosLaju also implemented an advanced IT system, 1PITTIS, to provide better tracking and tracing facilities. This contributed to an improved courier service quality. Despite an increase in volume handled, PosLaju was still able to improve the timeliness of its one-day delivery standard – from 95.5% in 2011 to 97.0%.

Retail Business

Over the years, Pos Malaysia has evolved into a one-stop centre for various services such as household bill payments, renewal of driving licences and road tax, purchase of motor and non-motor insurance, shared banking services and worldwide remittance services. These are offered at our network of post offices, mini post offices, postal agents, mobile Pos-on-Wheels and self-service terminals branded as POS24.

Our retail business closed the year with revenue of RM175.3 million, representing a 10.0% growth from previous year. Retail revenue saw double digit growth on the back of higher commission rates from existing partners and an increase in the number of high-margin transactions as we aggressively expand our financial services offerings. This is achieved through the introduction of two new Strategic Initiatives – ArRahnu@POS, a secured Shariah-compliant microcredit financing facility; and PosAssurance, our first self-branded life insurance plans.

ArRahnu@POS was launched in July 2012 through a joint venture with Bank Muamalat Malaysia Berhad. As at June 2013, we had established 50 Ar-Rahnu outlets within our post office network, targeting areas where there are opportunities in the market. Meanwhile, PosAssurance offers two life insurance products over our counters, branded as PosHayat and Pos Bestari, which were developed in collaboration with Uni.Asia Life Assurance Berhad.

During the year, we began the process of upgrading our front-end system with a new state-of-the-art IT infrastructure. With the new front-end system, we shall have a new platform which is robust and is geared towards supporting our future growth and expansion plans. To further enhance customer convenience, we deployed an additional 13 POS24s, where customers can pay their bills and purchase stamps, bringing the total number of self-service terminals to 25. These terminals, which operate 24 hours 7 days a week, provide an alternative to queuing at our counters and enabling our customers to transact beyond normal office hours.

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Our Philately unit has issued 17 new stamp collections which featured special techniques such as hot stamping, printing on foil, the use of glitter and fragrance and special die-cuts to create innovative designs. The collections commemorating the Diamond Jubilee of Queen Elizabeth II and the Installation of 14th DYMM Yang di-Pertuan Agong were overwhelmingly popular. Our Oh Memang Gempak (OMG) Kembara Setem programme, which aims to nurture young stamp enthusiast, received a positive boost when the Ministry of Education approved its extension across the nation. We received encouraging response from schools to OMG, which saw more than 60 schools signing up, exceeding our target of 25 schools.

Printing and Insertion Business

The printing and insertion business of Pos Malaysia is operated through Datapos (M) Sdn Bhd, one of the leading players in the hybrid mail industry. Datapos recorded an increase of 15.7% in consolidated revenue during the financial year, from RM16.4 million to RM19.0 million. This was attributed to an increasing customer base and business volume, partly due to new products launched. In 2012, Datapos moved into its new premise in Shah Alam which has more than double its workspace and now accommodates its printing and insertion machines under one roof. This has enabled Datapos to restructure its operations and integrate more seamlessly with mail processing and delivery.

Digital Certification Business

Digicert Sdn Bhd (Digicert), a wholly-owned subsidiary of Pos Malaysia, is the first Licensed Certification Authority in Malaysia. It engages in the issuance of legally binding digital certificates as part of the Public Key Infrastructure (PKI) technology in fulfilling the requirements imposed by the Digital Signature Act (DSA) 1997.

Digicert has a portfolio of government and private sector clients who leverage on its PKI technology. Among the company’s ongoing contracts are the provision of the e-Filing system for the Inland Revenue Board of Malaysia; the Quality Efficacy Safety System (QUEST) for the National Pharmaceutical Control Bureau; Atom Energy Licensing Board, e-Syariah, eCourt and a Pensions Online Workflow Environment for the Public Services Department, Government Financial Management Accounting System (GFMAS) for Accountant General Malaysia; online passport registration for the Immigration Department of Malaysia; and internet banking for corporate clients of CIMB Bank Berhad and Bank Rakyat Berhad.

INTERNATIONAL RELATIONS

Pos Malaysia continues to strengthen our standing in the international postal community by participating in regional and global postal initiatives. Regionally, we have been contributing towards efforts aimed at enhancing the quality of cross-border mail and parcel service, while at the global level we are involved in projects that serve to strengthen the international postal network.

Our active participation in international efforts led to Malaysia being elected to the Postal Operations Council (POC) at the 25th Universal Postal Union (UPU) Congress held in Doha, Qatar in October 2012, where we have been entrusted with the following leadership roles: • Vice Chair of Physical Services Committee (Committee 3) and member of the POC

Management Committee

• Chair of Parcel Post Remuneration Working Group under Committee 3

• Member of UPU-World Customs Organisation Contact Committee

• Member of dotPost Steering Committee


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Furthermore, we are a member of various working groups under the Supply Chain Integration Committee, Market Development Committee, e-Services Committee and Postal Financial Services Committee.

Our leadership positions in UPU enable Pos Malaysia to ensure the interests of Malaysia and the region are taken into consideration in key decision-making processes. Among others, we promote UPU’s policy of advocating the inter-operability of a single postal territory worldwide, namely affordability, accessibility, security and integrity.

Closer to home, Pos Malaysia chaired the 19th ASEAN Postal Business Meeting and the ASEANPOST++ Business Meeting in Siem Reap, Cambodia in November 2012. One successful outcome of the ASEANPOST meeting was the creation of a project group comprising the 10 ASEANPOST members and five dialogue postal partners to develop and implement a regional e-Commerce project. Another highlight of the meeting was Pos Malaysia making way for a new chair of ASEANPOST after helming the group for 21 years since 1992. The honour was handed over to Thailand Post in Siem Reap. Pos Malaysia will continue to play a key role in strengthening the ASEAN postal network in advance of liberalisation with the advent of the ASEAN Economic Community (AEC) in 2015.

REGULATORY DEVELOPMENTS

Throughout FY 2013, Pos Malaysia worked on several regulatory development projects with the then Ministry of Information, Communications and Culture (KPKK) and the Malaysian Communications and Multimedia Commission (MCMC). One of the notable developments for Pos Malaysia was the approval of 5-day working week for all Pos Malaysia staff by KPKK. As a result, all postal outlets implemented new operating hours with non-operations of one-man and two-men postal outlets on Saturdays from 1 January 2013. The half-day opening of bigger postal outlets ensures all customers of Pos Malaysia continue to access postal services in a convenient manner. The implementation of the 5-day working week took effect on 1 February 2013 for Sabah and Sarawak. The 5-day work week concept also means that all mail operations facilities will be closed on Saturdays with no mail collection, processing and delivery of mail on Saturdays.

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As an integral component of our employee engagement, we maintain a harmonious management-union relationship via a series of ‘Majlis Perundingan Bersama’ dialogue sessions with the seven union groups that represent Pos Malaysia. At these sessions, all issues and grievances affecting our employees are addressed and resolved amicably for the benefit of all parties.

As part of our commitment to employee welfare, Pos Malaysia has established an Education Assistance Scheme through which we provide financial assistance to the children of our employees. During the financial year, we disbursed a total of RM110,000 in grants to five students pursuing three-year tertiary education in automotive engineering and business courses at the International College of Automotive Malaysia in Pekan, Pahang.

REDEFINING BUSINESS FOCUS – MOVING FORWARD

As we strive to transform Pos Malaysia to be the trusted leader in the delivery of integrated physical and digital solutions, we have realigned our core businesses from product-centric, to customer-driven solutions moving forward. We believe this move will increase customer centricity; stimulating innovative business strategies to drive further growth. This shift will allow Pos Malaysia providing solutions that go beyond our traditional services and further enhance our product and service delivery. The restructuring breaks down the traditional boundaries of postal services, allowing us to leverage on greater synergies from our assets and core competencies to propel us to venture into new growth areas to achieve double-digit business growth, year on year, through to 2017.

As of 1 April 2013, our Mail business now falls under Communications and Distribution Solutions (CDS); Retail business is subsumed under One-Stop Solutions (OSS); Courier business has expanded to become Supply Chain Solutions (SCS); whilst Digicert and Datapos form the core of our Digital Solutions (DS). We have also created a new cluster; International Business Solutions (IBS), which will manage all international products and services which previously were managed under the different core businesses.

Pos Malaysia achieved another regulatory milestone by successfully completing the first phase of the Postal Transformation Program for Sabah and Sarawak (PTPSS) with the appointment of 600 Community Postmen and 1,000 Postal Community Representatives as well as the implementation of 10 Pos-on-Wheels in Sabah and Sarawak since 2010. The PTPSS was a government-funded project aimed at bringing Pos Malaysia to rural areas of Sabah and Sarawak, thereby enhancing quality of life and enabling communications between rural and urban communities. In order to further strengthen integration between Peninsular Malaysia and Sabah and Sarawak, KPKK has approved PTPSS Phase II with additional budget from the Government. Phase II of PTPSS commenced in November 2012 for a period of two years.

OUR MOST VALUED RESOURCES

Today, as we forge ahead with our transformation journey, it is imperative for our employees – from our postmen to senior management – to be fully aware of the strategic thrusts of SCORE so that they are able to play their part in achieving our long term goals. This is in line with our human development strategy to engage and motivate our more than 16,000 staff to keep improving, thus contributing to our success.

Communications and engagement are essential in this regard. The SCORE Office maintains a steady stream of communication to all employees at all levels via internal emails, flyers, posters and illustrations including providing a platform for two-way communications.

Our transformation necessitates continuous training and the professional development of our workforce. This will equip our employees with the relevant knowledge and skills to thrive in a dynamic business environment, and ensure we have the human capital required to drive us forward. In our quest for excellence, we identify and empower employees who show true potential, and provide them with targeted programmes under our new Talent Management Framework.


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Communications and Distribution Solutions

In our strategy to ‘look ahead and deliver beyond’ mail, we need to capitalise not only on the physical aspects of our extensive network and workforce, but also on the intangible relationships that we share with the many communities that we serve; through our postmen. While these relationships are strong in rural communities, we are working on re-establishing those special ties that we shared with householders in urban areas. This will place us in a better position to understand the needs of our customers thus be able to develop more relevant solutions.

For instance, the PosEdaran’s business will be expanded to new growth areas for further customer convenience. We also intend to further develop our Direct Mail, a service that is still in its infancy in Malaysia. Direct Mail enables customers to channel their advertising spend in a more strategic manner and is expected to contribute significantly to mail volume.

One-Stop Solutions

Our One-Stop Solutions provider aims to capitalise on our current network of outlets by expanding on the range of financial services offered. Having established ArRahnu@POS outlets in FY 2013, one of our immediate focus areas is to further expand this service, bringing the total number of outlets to 100 by end FY 2014, and positioning Pos Malaysia as a Top 3 Ar-Rahnu player in the domestic market. We are also working to extend the International Express Money Order service that we currently offer to Indonesia to a wider range of countries including Vietnam, India, Bangladesh, Cambodia and Laos.

PosAssurance has significant growth potential as our existing network allows for an unprecedented reach to the under-insured Malaysian populace. There are also plans in the pipeline to collaborate with a Takaful principal to develop and offer family Takaful products at our outlets, thus adding to our current range of financial solutions.

Given the wide range of financial products and services that we offer at our post offices and alternative channels, supported by our new front-end system, we are well positioned to become a leading One Stop Solutions provider for our valued customers.

Supply Chain Solutions

While our PosLaju is already the leading player for domestic courier shipment, under the broader-based umbrella of Supply Chain Solutions we intend to further expand this business. The increasingly busy lifestyles of Malaysians provide an opportunity to create greater value to our services through innovative touch-points and extended working hours. Efforts are under way to further strengthen the courier business to entrench our position as a leader in the domestic delivery segment. At the same time, the Supply Chain Solutions will seize new opportunities within the growing logistics value chain to offer integrated and customised solutions to its customers. Digital Solutions

The digital revolution opens up a huge opportunity for Pos Malaysia to extend the reach of our current services whilst developing new ones, which are complementary to our existing offerings. In the pipeline is the relaunch of PosOnline, which will consolidate our current online services under a single platform. Malaysians will be able to access a host of digital services, from simple online purchases to bill presentation and fulfillment. Leveraging on Datapos’ and Digicert’s resources, customers’ bills can be presented on the new PosOnline, coupled with secure online payment capabilities, allowing for added convenience.


The establishment of the International Business Solutions cluster will enable us to capitalise on opportunities in the attractive cross border market. Amongst new solutions to be launched include Surface-Air Lifted mail services and cross-border e-commerce. We will have a dedicated team to look ahead and go beyond our current services overseas. We have already made inroads with our counterparts in Europe to establish Pos Malaysia as their gateway to ASEAN.

We feel confident of making great strides in the international arena given our strong fundamentals and our position in the Postal Operations Council of the Universal Postal Union, which strengthens our visibility and stature in the global space.

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OUTLOOK

The financial year under review has been a turning point in the history of Pos Malaysia. We have introduced many new services, upgraded our systems and established ourselves more firmly within the international fraternity of postal organisations. These positive developments have placed us in a very strong position to grow both organically and inorganically.

The communications space globally continues to evolve rapidly, and postal organisations need to remain at the forefront of this change in order to stay relevant. Pos Malaysia is fully cognisant of the fact, and our accelerated transformation is a testament to our commitment to embrace the challenges facing us. We believe we have made good headway over the last three years, and are encouraged by the results thus far. Notwithstanding our achievements, we endeavour to push harder, embracing new opportunities to transform into the trusted leader in the delivery of integrated physical and digital solutions.

Dato’ Iskandar Mizal bin MahmoodGroup Chief Executive Officer


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Accolades and Awards

1 2PosLaju

• Reader’s Digest Trusted Brands Gold Award in the Airfreight/Courier Service Category in Malaysia for 2012

• Frost & Sullivan Malaysia Excellence Award for the Domestic Express Service Provider of the Year for 2012

Retail Services

• Top two zakat counters in 2012 by Pusat Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan (PPZ MAIWP) – KLCC and Gombak Post Office

• Special award to Pos-on-Wheels in Wilayah Persekutuan by Pusat Pungutan Zakat Majlis Agama Islam Wilayah Persekutuan (PPZ MAIWP)

• Zurich Insurance Malaysia Berhad: Super Platinum Award• RHB Insurance Berhad: Top Financial Institution – Top Agencies Financial Categories• Allianz General Insurance Company (M) Berhad: Franchise Appreciation Award• Kurnia Insurance Berhad: Top Corporate Producer 2012• Western Union’s Agent with highest incremental transaction

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3 4 5Digicert

• Retained ISO 9001:2008 certification for the third consecutive year, and complied with all requirements of the Digital Signature Act 1997 as verified by Ernst & Young, the registered auditor of the Malaysian Communications and Multimedia Commission (MCMC)


• Recipient of the Expedited Mail Service (EMS): UPU EMS Gold Certification 2012 for the second consecutive year

• Appointed as a member of the Postal Operations Council during the 25th Universal Postal Union Congress at Doha, Qatar

• Attained Quality Management Level A from the Universal Postal Union

Internal Audit

• Recognition for Conformity with the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing


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List of Offerings

MAIL PRODUCTS AND SERVICES

PRINTING AND INSERTION SERVICES

COURIER, ExPRESS AND PARCEL PRODUCTS AND SERVICES

• MAILING SOLUTIONS• Standard Mail• Non-Standard Mail• Postcard• Aerogramme• MelRakyat

• PREMIUM MAILING SOLUTIONS• PosDaftar

• BUSINESS MAILING SOLUTIONS• Prepaid Postage• Franking• Periodicals• PosDokumen• Small Packet• Corporate Mail Management• Business Reply Services• Special Handling Services• Customs Clearance

• POST OFFICE SERVICES• Private Letter Box• Locked Bag Service• Window Delivery Counter

• ADVERTISING SERVICES• AdMail• Direct Mail• Envo-Ad

• DATA PROCESSING• Database Management • Software Solutions

• HIGH SPEED DIGITAL LASER PRINTING• High Volume Digital Quality Printing• Personalised (Variable Data Printing)• Simplex Highlight Colour • Simplex and Duplex B&W• Continuous and Cut Sheet Printing

• MAIL PROCESSING • Enveloping, Bar Coding and Account Number

Verification (ANV) • Poly Wrapping (plastic)• Page Mailer / Seal Mailer • Address Labelling, AR Register, Packing and

Reporting• Courier Mail Agent

• TRANSPORTATION • Pick-Up and Delivery

• VALUE ADDED SERVICES • Return Mail Management• Data Archiving and Imaging• E-Bill Presentment

• NEXT DAY DELIVERY• Next working day delivery (D+1) within PosLaju

coverage area

• SAME DAY DELIVERY• Local Town & Cross Town delivery for documents

up to 1kg

• TIME CERTAIN SERVICE DOMESTIC (TCS)• Guaranteed delivery by 10 am the next working

day

• POSLAJU PREPAID BOXES & ENVELOPES• A convenient and cost-saving shipping solution

for documents and merchandise of up to 10kg available at more than 700 sales outlets across Malaysia including PosLaju Centres, Post Offices and Authorised Agents

• POS PARCEL• Economy shipping with standard delivery service

to all destinations in Malaysia

• POS EKSPRES• Fast, convenient and economical way of sending

documents with a Next Day Delivery guarantee

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INTERNATIONAL PRODUCTS AND SERVICES

• POSLAJU PACK• Boxes, envelopes and tubes available at our

PosLaju branches

• ON DEMAND PICK-UP• On Demand Pick-up service available at tel:

1 300 22 5258 or online: www.poslaju.com.my for an additional charge of RM5

• POSLAJU INSURANCE• Insurance for valuable items

• TRACK & TRACE• Via www.pos.com.my, www.poslaju.com.my or via

SMS. Type PL<space>your consignment number and send to 33333. RM0.50 will be charged for each SMS sent. Available for Celcom, Maxis and DiGi subscribers only

• DISTRIBUTION & LOGISTICS• Various distribution & logistics services to meet

corporate customer’s needs

• AUTOMOTIVE LOGISTICS• Dependable automotive logistics services for

dealership, vehicle manufacturers and remarketers

• WAREHOUSING SERVICES• These services fulfill the needs of our corporate

customers

• INTERNATIONAL MAIL SERVICES• Air Mail• Surface Mail

• INTERNATIONAL PARCEL SERVICES• Air Parcel• Surface Parcel

• INTERNATIONAL SMALL PACKET SERVICES• Air Small Packet

• INTERNATIONAL REGISTERED SERVICE

• INTERNATIONAL PREPAID PACKET

• EMS INTERNATIONAL • Delivery to over 220 countries worldwide through

Express Mail Service (EMS)

• CUSTOMIZED SHIPPING SOLUTIONS – ASIAXPRESS• AsiaExpress delivers the best courier service to

international destinations.


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List of Offerings (cont’d.)

• PAYMENT SERVICES• Bill Payment

o Electricityo Watero Telephone and Interneto Assessmento Quit Rento Medical Bills

• Public Services o JPJ Driving License Renewalo JPJ Road Tax Renewalo SPR Voters’ Registration and Change of

Addresso SOCSO Paymento LHDN Income Tax Paymento LHDN Stamp Dutyo PDRM Traffic Summons Paymento JPJ Traffic Summons Payment

• Loan Repaymento TEKUNo Jabatan Perumahan Negarao PKNS

• Student Loan Repaymento JPAo PTPTNo MARAo Education Foundation (13 Foundations)o Ministry of Higher Education (KPT)o Perbadanan Tabung Pendidikan Kemahiran

(PTPK)

RETAIL PRODUCTS AND SERVICES

• Zakat (Tithe) Paymento 14 States Zakat Centres

• Waqafo Yawatim

• Ticketing and Bookingo Firefly

• Telco Prepaid Cards/Reloado Maxiso DiGio Celcom

• FOMEMA• Lembaga Tabung Haji• Purchase and Registration

o PI Registration • FINANCIAL SERVICES

• ArRahnu@POS• Domestic Remittance

o Domestic Money Ordero Postal Ordero Express Money Order

• International Remittanceo International Express Money Ordero International Money Ordero Western Union

• Unit Trusto PNB Products (ASN, ASB, ASM, ASW, ASD,

ASG, AS1M)• General Insurance

o Pos Insurance 1 Malaysia (Individual & Family)

o Pos Auto Pluso Pos Auto Assisto Pos Hospital Cash Incomeo Pos Maid Protectoro Pos Motorshield PAo Pos Cuti-Cuti PAo Pos Raya Insuranceo PosHayat (Life Insurance)o Foreign Worker Hospitalisation and Surgical

Insurance Scheme (SKHPPA)o Drivers & Passengers PAo Flexi PAo Motor Insurance in Partnership With Panel

Insurers:– UniAsia General Insurance– Allianz General Insurance– Kurnia Insurance– Zurich Insurance (formerly known as MAA

Assurance)– ETIQA Insurance & Takaful– Syarikat Takaful Malaysia– RHB Insurance– Malaysian Motor Insurance Pool– Multi Purpose Insurance

• Life Insuranceo UniAsia Life Insurance

– PosHayat– Pos Bestari

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• Shared Banking Services (*At Selected Outlets)o RHB Bank*

– Transactional• Cash Deposit• Cash Withdrawal• Loan Repayment• Funds Transfer

– Marketing of Retail Financial Products (RHB EASY Kiosk)• ASNB Loan• Credit Card• Personal Financing• PA Insurance• Life Insurance• EASY Savings

o Maybank*– Cash Deposit– Cash Withdrawal– Loan Repayment

• POSSHOPPE• Pos Ekspres Envelopes• Pos Laju (Prepaid, Postpaid)• Paket Pos Terus• Philately

o Annual Stamp Albumso Stamp Bookletso Miniature Sheetso Folder Setso Other Collectables

• PosNiaga Packs/Boxes

• Postcode CD• Postal Related Products

o Envelopeso Padded Envelopeso Tapeso Wrapping Materialo Parcel Stringso Postcode CDo Greeting Cards

• PHILATELY• Stamps

o Special Issueso Commemorativeo Definitive

• SODA Accounto New Account Registrationo Account Top-Up

• Personalised Stampso SetemKu Corporateo SetemKu Individual

• Other Philatelic Productso First Day Coverso Miniature Sheetso Presentation Packso Folder Setso Annual Stamp Albumso Stamp Bookletso Greeting Stamps

• Other Collectables

• AUTHENTICATION & DIGITAL SIGNATURE SOLUTIONS• Server Certificate• DIGISGN ID Enhanced

o Smartcard• DIGISIGN ID Basic

o Smartcard, Security Token and Softcert• DIGISIGN Wireless PKI• DIGISIGN PKI Toolkit

o DC Toolso DC Signatureo DC Tools Crypto

• iVEST Client• iVEST Biz Client• iVEST Server

• ENTERPRISE MANAGED IT SECURITY SERVICES (EMITSS)• Vulnerability Assessment Services (VAS)

o External Penetration Testing Serviceso Internal Penetration Testing Serviceso Web Application Testing Serviceso Vulnerability Assessment

• Security Information Event Monitoring Services (SIEMS)

• Managed Identity Management Serviceo Support Maintenance Serviceso Preventive Maintenance Serviceso Deployment & Configuration Services

DIGITAL CERTIFICATION PRODUCTS AND SERVICES


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Corporate Events

LAUNCH OF POSLAJU PREPAID BOX AND ENVELOPE

PosLaju launched its Prepaid Box and Prepaid Envelope at Plaza Shah Alam. The boxes and envelopes, which come in various sizes for items weighing up to 10kg, can be used for mailing to any destination within Peninsular Malaysia.

POS MALAYSIA PARTNERS WITH ROYAL MALAYSIAN CUSTOMS DEPARTMENT

Pos Malaysia and Royal Malaysian Customs Department (Kastam DiRaja Malaysia – KDRM) signed a strategic partnership to extend KDRM’s services at Pos Malaysia International Hub, Kuala Lumpur International Airport (KLIA), Sepang.

7 April 2012 20 – 28 April 2012

MINGGU SAHAM AMANAH MALAYSIA 2012

Pos Malaysia participated in the annual Minggu Saham Amanah Malaysia, organised by Permodalan Nasional Berhad in Kota Kinabalu, Sabah, where its Strategic Business Units including Mail, Retail and PosLaju exhibited their services.

30 April 2012

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26 June 2012

LAUNCH OF AR-RAHNU SERVICES AT POS MALAYSIA OUTLETS

Pos Malaysia and Bank Muamalat Malaysia Berhad (BMMB) formed a joint venture to offer Islamic pawn broking services, Ar-Rahnu, at selected Pos Malaysia outlets. The Ar-Rahnu services will be carried out and managed by Pos Malaysia subsidiary, Pos Ar-Rahnu Sdn Bhd, under the brand name ArRahnu@POS.

20TH ANNUAL GENERAL MEETING

Pos Malaysia held its 20th Annual General Meeting at the Istana Hotel Kuala Lumpur.

9 August 2012

HARI RAYA OPEN HOUSES

Pos Malaysia celebrated Hari Raya Eidul Fitri with its staff at the Commuter Walkway, Dayabumi Complex on 6 September; and with its corporate clients and members of the media at One World Hotel, Bandar Utama on 10 September.

6 & 10 September 2012


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Corporate Events (cont’d.)

19 December 2012

EKSPLORASI ALAM CUTI SEKOLAH

Pos Malaysia organised a special programme for the children of its staff to visit Padang Kemunting Sea Turtle Sanctuary. 80 children participated in turtle conservation activities including a ‘gotong-royong’ session to clean up the beach as well as visit the Al-Khawarizmi Astronomy Complex in Melaka.

17 October 2012

LAUNCH OF ETIQA TAKAFUL FLEXI PA AND DRIVER PA

Pos Malaysia and Etiqa Takaful established a strategic collaboration to offer Takaful Flexi PA and Takaful Drivers & Passengers PA for Etiqa customers at all Pos Malaysia outlets.

LAUNCH OF SENANG MENANG@POS CONTEST

Pos Malaysia launched Senang Menang@POS contest to increase awareness of its retail and financial services. Senang Menang@POS was held from 17 December 2012 until 24 February 2013 at all Pos Malaysia outlets.

17 December 2012

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SCHOOL UNIFORMS FOR ORPHANS

Pos Malaysia took 75 orphans from Rumah Sentuhan Budi, Kuala Lumpur and Rumah Limpahan Kasih, Puchong to purchase school uniforms and other school necessities at a leading departmental store.

LAUNCH OF POSLAJU’S HANTAR & MENANG CONTEST

PosLaju’s Hantar & Menang Contest was held to reward all its walk-in as well as On-Demand Pickup (ODP) customers who purchased its products and services using Consignment Notes (such as sending courier items with PosLaju) at any of the 63 PosLaju centres all over the country during the contest period from 1 December 2012 until 31 March 2013.

26 December 2012 31 January 201321 – 23 January 2013

MOTIVATIONAL CAMP FOR ADOPTED SCHOOLS

Pos Malaysia organised a motivational camp for 90 Year Six students from Sekolah Kebangsaan Tanjung Agas, Pekan, Pahang and Sekolah Kebangsaan Pekan Pagoh, Muar to help them prepare for the Ujian Penilaian Sekolah Rendah school examinations.


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12 March 2013

LAUNCH OF POSLAJU PEKAN, PAHANG

In line with Pos Malaysia’s ongoing efforts to offer customer convenience in managing their courier and express delivery requirements, Pos Malaysia launched its 63rd PosLaju centre in Pekan, Pahang.

MOTIVATIONAL CAMP FOR ORPHANS

Pos Malaysia organised a motivational camp for orphans from Rumah Sentuhan Budi, Kuala Lumpur and Rumah Limpahan Kasih, Puchong with the main aim of boosting their morale in overcoming life’s challenges as well as motivate them towards achieving success in their future undertakings.

25 – 27 March 2013 30 March 2013

DEPUTY PRIME MINISTER VISITS PUSAT MEL NASIONAL

Pos Malaysia welcomed YAB Tan Sri Dato’ Hj Muhyiddin Haji Mohd Yassin, Deputy Prime Minister of Malaysia on his working visit to the Pusat Mel Nasional in Shah Alam. Accompanying the Deputy Prime Minister were YBhg Tan Sri Dato’ Seri Utama Dr Rais Yatim, Minister of Information, Communications and Culture, Dato’ Sri Kamaruddin Siaraf, Secretary General, Ministry of Information, Communications and Culture and Dato’ Mohamed Sharil Mohamed Tarmizi, Chairman of the Malaysian Communications and Multimedia Commission (MCMC). Also present to welcome the guests of honour were Tan Sri Dato’ Sri Hj. Mohd Khamil Jamil, Chairman of Pos Malaysia, Encik Mohd Shukrie Mohd Salleh, the then Covering Group Chief Executive Officer of Pos Malaysia, as well as the Board of Directors of Pos Malaysia, the Management Team of DRB-HICOM and the Leadership Team of Pos Malaysia.

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GOVERNMENT PROGRAMMES

Pos Malaysia fully support the Government’s 1Malaysia efforts as we believe in the ideals of a united nation. We recognise by taking part in Government activities, it help us to build better relationship with our stakeholders while at the same time, allow us to bring greater value to the community.

BIRU = c = 100 m= 100 y = 0 k = 0

MERAH = c = 0 m= 100 y = 100 k = 0

PUTIH = c = 0 m= 0 y = 0 k = 0

KUNING = c = 0 m= 0 y = 100 k = 0

HITAM = c = 0 m= 0 y = 0 k = 0

2012 NATIONAL LABOUR DAY CELEBRATION

For the very first time, Pos Malaysia participated in the 2012 National Labour Day celebration together with other DRB-HICOM Group subsidiaries namely PROTON, Bank Muamalat and Alam Flora. 50 Pos Malaysia staff participated in the celebration themed Pekerja Berinovatif Penggerak Transformasi (Innovative Employees Driving Transformation).

The celebration was officiated by the Prime Minister, YAB Dato’ Sri Mohd Najib Tun Abdul Razak on 12 May 2012 at the Malaysia Agro Exposition Park Serdang in Selangor.

1 12 May 2012

LAUNCH OF KPKK’S MORAL VALUES CAMPAIGN

The 1Malaysia Values Campaign is a Ministry of Information, Communications and Culture (Kementerian Penerangan, Komunikasi & Kebudayaan – KPKK) programme to promote moral values that serve to bind society together. The ongoing campaign was inaugurated by Deputy Prime Minister, YAB Tan Sri Dato’ Hj. Muhyiddin Hj. Mohd Yassin on 14 May 2012 at the National Library in Kuala Lumpur.

During the event, the former Prime Minister Tun Dr Mahathir Mohamed was conferred the honour of Ikon Membaca Kebangsaan (National Reading Icon) while Encik Mohd Fariz bin Kamaruzzaman, a postman from Pudu Delivery Branch, was presented with the Excellent Postman Award.

2 14 May 2012


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2012 MAAL HIJRAH NATIONAL CELEBRATION

Every year, Pos Malaysia participates in the National Level Celebration of Maal Hijrah organised by the Department of Islamic Development (Jabatan Kemajuan Islam Malaysia – JAKIM). This year, the event was held at Putrajaya International Convention Centre (PICC), Putrajaya on 15 November 2012 and officiated by DYMM Seri Paduka Baginda Yang DiPertuan Agong, Tuanku Alhaj Abdul Halim Mu’adzam Shah Ibni Almarhum Sultan Badlishah.

4 15 November 2012

2012 NATIONAL DAY CELEBRATION AT DATARAN MERDEKA AND 55th MERDEKA – JANJI DITEPATI GATHERING AT STADIUM BUKIT JALIL

Pos Malaysia together with the MCMC and other telecommunications operators formed the Communications Sector contingent at the National Day celebration at Dataran Merdeka, Kuala Lumpur on 31 August 2012. The 300-strong contingent was led by Dato’ Mohamed Shahril Mohamed Tarmizi, Chairman of MCMC. Pos Malaysia was represented by its Group Chief Operating Officer, Encik Mohd Shukrie Mohd Salleh.

On the evening of the same day, 500 staff from Pos Malaysia represented the Company at the 55th Merdeka – Janji Ditepati gathering held at Bukit Jalil National Stadium, Kuala Lumpur. The event was officiated by the Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak.

3 31 August 2012

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2012 1MALAYSIA LETTER WRITING COMPETITION

Pos Malaysia successfully organised the 2012 1Malaysia Letter Writing Competition in collaboration with MCMC. This competition, which has now extered its third year running was supported by KPKK and the Ministry of Education. The objective was to promote proper usage of the national language among the younger generation as well as to revive the art of letter writing.

5 16 November 2012

Held from 1 April until 15 July 2012, participants were allowed to choose from three themes: Amalan Berbudi Bahasa, Kebaikan Penggunaan Internet and Semangat Kejiranan in line with the Nilai-nilai Murni Campaign inspired by YB Dato’ Seri Utama Dr Rais Yatim, Minister of Information, Communications and Culture. Pos Malaysia received an overwhelming response of 95,000 entries.

The prize giving ceremony was held on 16 November 2012, and was honoured by Dato’ Jailani Johari, Chief Industrial Regulator Officer of MCMC.


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1434H/2013M MAULIDUR RASUL CELEBRATION

Pos Malaysia participated in the 1434H/2013M Maulidur Rasul Celebration organised by the Department of Islamic Development (JAKIM) at Masjid Putra, Putrajaya on 24 January 2013, which was officiated by DYMM Seri Paduka Baginda Yang DiPertuan Agong, Tuanku Alhaj Abdul Halim Mu’adzam Shah Ibni Almarhum Sultan Badlishah. Pos Malaysia’s contingent of 75 staff participated in the march from the Tuanku Mizan Zainal Abidin mosque to Masjid Putra, both in Putrajaya.

7 24 January 2013

MAJLIS RAMAH MESRA WAKIL KESATUAN-KESATUAN SEKERJA POS MALAYSIA BERSAMA YB MENTERI KPKK

On 5 December 2012, Minister of Information, Communications and Culture YBhg Tan Sri Dato’ Seri Utama Dr Rais Yatim met with representatives of Pos Malaysia’s Unions and the Leadership Team at the Sultan Abdul Samad Complex in Kuala Lumpur. The lively event served to strengthen the relationship between Pos Malaysia and the Ministry. At the event, the Minister announced Pos Malaysia’s new operating hours effective from 1 January 2013.

Pos Malaysia’s Chairman, Tan Sri Dato’ Sri Hj. Mohd Khamil Jamil, expressed his highest gratitude to the Minister and pledged Pos Malaysia’s continued support and unwavering commitment to the Ministry and the Government.

6 5 December 2012

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REBUILDING ORANG ASLI HOMES IN JELEBU, NEGERI SEMBILAN

Representatives from Pos Malaysia and KPKK helped to rebuild and renovate homes in four orang asli communities in Jelebu, Negeri Sembilan, over a period of three months from January until March 2013. Their activities were held in conjunction with RTM’s Broadcast Extension to Aboriginal Community Village Programme and formed part of Pos Malaysia’s ‘We Care’ corporate social responsibility campaign.

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2013 FEDERAL TERRITORY DAY

Pos Malaysia’s contingent participated in the 2013 Federal Territory Day celebration where it reiterated the Company’s commitment and determination to work together continuously in order to develop the country’s economy, for the benefit of the people. The event, organised by the Ministry of Federal Territories and Urban Wellbeing, was held at the Cheras Football Stadium in Kuala Lumpur on 2 February 2013, and was officiated by Prime Minister, YAB Dato’ Sri Mohd Najib Tun Abdul Razak.

8 2 February 2013 January – March 2013


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